Saturday, November 20, 2010

Wall Street Report: U.S. to lift lid on 'pervasive insider trading'

Executive tells clients he declined FBI's 'gracious offer to wear a wire and therefore ensnare you in their devious web'

“U.S. officials are preparing insider trading charges against a host of financial players, including investment bankers and hedge fund managers, according to The Wall Street Journal, which cited people familiar with the matter.

The charges could surpass any previous investigations on Wall Street, and examine whether certain players garnered tens of millions of dollars in illegal profits, according to the newspaper.

The three-year investigation could expose "a culture of pervasive insider trading in U.S. financial markets", especially in ways private information is transmitted to traders through connected insiders, the newspaper said, citing federal authorities.” More here.

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